Mandatory Audit Firm Rotation (MAFR)
Facing up to a new reality
Mandatory Audit Firm Rotation (MAFR) in South Africa was gazetted into law on 5 June 2017. The ruling is effective for financial years commencing on or after 1 April 2023 and is applicable to listed companies, as well as a broad range of other Public Interest Entities (“PIEs”), as defined.
How can EY help you?
- At EY our objective is to assist you to make the best decision as to how and when to respond to MAFR. We recognise that many businesses have not experienced audit firm rotation in many years and would have never gone through such a change process or may have little experience of selecting a new audit service provider.
- Unpacking MAFR: Audit committee members and senior executives, in particular CFO’s, are finding it helpful to understand the details and nuances arising in respect of MAFR. This includes a more in-depth conversation on independence, in particular s90(2) of the SA Companies Act and its impact on available options. We remain close to the evolving debate on s90(2) and the potential changes affecting the provisions.
- Facilitating a session to discuss the important elements of a tender process such as decision making criteria, structuring of the tender process, timing, interaction with bidding firms, roles and responsibilities and ensuring potential bidders are independent and would not be precluded from participating.
- Sharing RFP guidance: We can provide objective guidance on how to deploy and execute a best practise tender process.